Breaking rules cost more than you would ever imagine. So if you have an inkling that those within your business are not following the rules but you’ve decided not to rock the boat. Ask yourself how much are you willing to fork out when the hire powers catch up with you. This time round I’m going to remind you of the recent penalties, to the tune of $549m issued to several banks for evading the process.
There’s always someone higher
So 11 banking firms were dubbed as having widespread and long-lasting failures because they failed to maintain records. In this technological age, with many apps at our fingertips, it’s easy to fall into habits of convenience. However, it’s essential to take note and comply with the rules of your governing body. And in this case, there was an expectation to maintain records of employee communication.
It was deemed that apps like WhatsApp were used to get around the regulations; ultimately, this was a costly move for the company. Whilst in the UK, we may not have the Securities and Exchange Commission or the Commodity Futures Trading Commission, we do have some worthy equivalents, such as the Financial Conduct Authority(FCA), Information Commissioner’s Office (ICO) or Solicitors Regulation Authority (SRA). Even for the smallest business, you want to avoid a penalty from HMRC!
Stop burying your head when you know you've got changes to lead.
When is the Most Cost Effective Time to Review?
Now. Firstly there is no better way of showing who is in charge than maintain control over all areas of your business. Policies and procedures are the woven threads running through the entire company and must be adhered to.
Where the regulatory bodies have come in and ordered the banks to hire consultants to review their banking policies, it’s utterly embarrassing. You don’t want someone coming into your business telling you how to run it. However, if you have decided to conduct business in a regulated sector, you must incorporate the rules of someone else’s house.
Don’t fool yourself into believing that no one is watching you. Staying up to date with affairs in your industry should be an excellent reminder to ensure your HouseRules are being followed.
Don't run the risk of being caught out like a naught school child. Get your house in order with HouseRules.
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The Costly Reputation Ripple
There will no doubt be a ripple effect through the sector as clients proceed with caution. The foundation of trust has been shaken and the result will be some small cracks of uncertainty. Therefore it’s the perfect time to introduce a refresher session and review the process.
Are the right persons understanding what is required and working in compliance with those HouseRules? Simply leaving compliance down to good faith and trust is foolhardy. Having in place a system that monitors and enforces where necessary, across the internal community is what any responsible business owner would do to ensure that any oops moments are identified and addressed.
Why Take the Risk?
It’s funny (not haha) that now the banks are being ordered to hire consultants to review their policies. It was reported that even though those who were supposed to be in the know were reckless if not negligent in following the regulations. It’s not only a case of understanding but calling out behaviour that goes against the grain.
That’s another reason to would with an external expert like CAS Ltd. If an adverse practice is established, it can be called out and brought to the attention of the leadership team. Be proactive and take the initiative yourself before getting caught out by higher powers and enduring the painful slap on the wrist and to the pocket.
You know that I understand time is valuable, so I will not keep you longer than necessary. So go away and think about what you have read.
Once you realise it doesn’t have to be so tricky, then go ahead and book that Sip & Chat. My calendar is open to all, but there’s a limit on the number of working relationships at any time. I’d hate for you to miss out.
